What Is the Following Prize Worth Today If Money Can

question 225

Multiple Choice

What is the following prize worth today if money can earn 9% compounded monthly: $5,000 payable two years from now, and a series of eleven $100 monthly payments beginning one month from now?

• A) $5,231.22
• B) $7,124.26
• C) $3,240.98
• D) $3,265.29
• E) $8,620.56

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Definitions:

Nonprofit Businesses

Organizations that operate for a purpose other than making profit for the owners or shareholders, often focusing on social, educational, or charitable missions.

Social Ventures

Businesses that aim to make a positive impact on social issues while generating financial returns.

Angel Investors

Wealthy individuals who provide capital for a business start-up, usually in exchange for convertible debt or ownership equity.

New Ventures

Freshly started business endeavors that aim to meet a marketplace need or to capitalize on an opportunity.